Tata Consumer To Issue Right Shares Worth Rs 2,997 Crore, Stock Falls
The issue price is Rs 818 per share, which also includes premium of Rs 817.
Tata Consumer Products Ltd. will issue right shares worth Rs 2,997.77 crore in early August, the company said in an exchange filing. The stock declined over 3% on Wednesday.
Tata Consumer Products will issue 3.66 crore rights equity shares, each amount aggregating to Rs 2,997.77 crore. The issue price is Rs 818 per share, which also includes premium of Rs 817, as approved by its Capital Raising Committee on Tuesday.
The record date of the right issue is July 27. It will open on Aug. 5, and close on Aug. 19, the exchange filing said.
Eligible equity shareholders will received one rights equity share for every 26 paid-up fully equity shares held on record date, the exchange filing said. The fractional entitlement of such eligible equity shareholders shall be ignored in computation of rights entitlement.
Shares of Tata Consumer Products Ltd. fell 3.14%, the lowest level since July 23, before paring loss to trade 2.61% lower at Rs 1,224.15 apiece as of 10:28 a.m. This compares to a 0.15% decline in the NSE Nifty 50.
The stock has gained 42.77% in 12 months, and 12.89% year-to-date. Total traded volume so far in the day stood at 0.61 times its 30-day average. The relative strength index was at 65.55.
Out of 28 analysts tracking the company, 20 maintain a 'buy' rating, seven recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 1.1%.
